Jim Cramer’s Best Performers List: 12 Stocks Cramer is Talking About

3. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 130

Cramer highlighted that he has been excited about Broadcom Inc. (NASDAQ:AVGO) for some time and made a note of its VMware division.

“Broadcom makes data center plumbing, but also has a broadband infrastructure business, including cell phones. Now, we had CEO Hock Tan on when he went to San Francisco. He told an incredible story. I was so excited, I was jazzed about it, but nobody listened.

Well, now they’ll listen. Stock just hit an all the time high today. It’s not done. I’d hold onto it, especially since its VMware division helps data centers cut harbor costs and operate much more efficiently. And it has really turned the corner. I like that stock very much.”

Broadcom (NASDAQ:AVGO) is a nearly $850 billion company and is engaged in designing, developing, and supplying a wide range of semiconductor devices, with a rich history in semiconductor design. The company has established a formidable portfolio of intellectual property that positions it well in the competitive industry of artificial intelligence among major technology firms.

Broadcom’s (NASDAQ:AVGO) networking chips play an essential role in the infrastructure of AI data centers, facilitating the rapid and efficient transfer of data between servers, which improves overall data center performance. In addition to its networking chips, the company has expanded its footprint in AI through its acquisition of VMware in late 2023, which allows users to create virtual desktops in the cloud. It has further solidified its position in high-growth sectors, as AI networking chips for Ethernet and VMware’s software are expected to account for more than half of the company’s revenue in the near future, potentially accelerating overall growth.

During the third-quarter earnings call, CEO Hock Tan noted the impressive scale-up of AI operations among hyperscale customers. He highlighted that custom AI accelerators have seen a remarkable year-on-year growth of three-and-a-half times.